Transferring Pension

PennyCrayon_2

Hi,

I am 25 and would like to transfer my existing company pension (now that i have left) into an L&G personal pension. This is because my current job situation is unstable and i want some form of pension.

I would like to transfer my pension as execution only. However, i understand that there is an admin fee of at least £100 at the moment and that doing it this way carries a lot of risk.

Any advice most welcome

EdInvestor

This should be fairly simple assuming the company pension is money purcahse or GPP.

1.Open pension account at L&G
2.Instruct company to forward pension transfer value to new account.

Who is charging the £100 admin fee?

PennyCrayon_2

I googled 'transferring pensions' and read that an admin fee is charged when you opt for execute only with pension companies.

I hope this isn't the case.

dunstonh

I would like to transfer my pension as execution only. However, i understand that there is an admin fee of at least £100 at the moment

Every IFA will price differently for execution only. If its going through on nil commission and you are paying £100 then that doesnt seem to bad.

that doing it this way carries a lot of risk.

Not really. It does mean that you get virtually no consumer protection as you are making the choices. You cant blame someone else later if you get it wrong. Also, the choice of provider may not be the best one. For example, I wouldnt be chosing L&G. You can almost certainly get cheaper and/or better investment selections.

yelf

"I am 25 and would like to transfer my existing company pension (now that i have left) into an L&G personal pension."

Why have you come to that decision? Where is your company pension now, and as duntonh says : why L&G?

Seems like you could be doing something that isnt the most suitable thing to do.

Pac123

Hi

Can you please confirm what sort of company pension you have?

Have you asked the company pension what your options are when you leave the company. You may be able to keep the plan with same pension company and the ongoing AMC may be lower than any PP.

Thanks

EdInvestor

PennyCrayon wrote: »

I googled 'transferring pensions' and read that an admin fee is charged when you opt for execute only with pension companies.

I hope this isn't the case.

It isn't the case.Nor do you need an IFA to do the transfer, though it actually could be cheaper that way..

PennyCrayon_2

I have a money purchase company pension.

I was told that i must make sure that the company i transfer my pension into accepts contracted out benefits

I have chosen L&G because they do the above and allow execution only.

dunstonh

I have chosen L&G because they do the above and allow execution only.

Virtually all personal pensions accept protected rights. Are you saying you are going direct to L&G and not using an IFA on execution only basis? If so, thats almost certainly more expensive.

PennyCrayon_2

So you are saying that i should consult an IFA and let them choose a pension for me?

How much will that cost me?

EdInvestor

Try using these people:

https://www.cavendishonline.co.uk

They will do the transaction and rebate a chunk of their fee into your plan.:)